bs and hr six sigma practices
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The Balanced Scorecard is a management system that maps
an organization's strategic objectives into performance metricsin four perspectives: financial, internal processes, customers,
and learning and growth
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Strategic objectives - what the strategy is to achieve in that
perspective.
Measures - how progress for that particular objective will be
measured.
Targets - the target value sought for each measure.
Initiatives - what will be done to facilitate the reaching of the
target.
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objective Specific Measure
growth revenue growth
profitability return on equity
cost leadership unit cost
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objective specific measure
new products % of sales from new products
responsive supply on time delivery
to be preferred supplier share of key accounts
customer partnerships number of cooperative efforts
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Objective Specific Measure
Manufacturing excellence Cycle time, yield
Increase design productivity Engineering efficiency
Reduce product launch delays Actual launch date vs. plan
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Objective Specific Measure
Manufacturing learning Time to new process maturity
Product focus% of products representing 80% of
sales
Time to market Time compared to that of competitors
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Define the measurement Architecture
Specify strategic objective
Choose strategic measures
Develop the implementation plan
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Design and test a customised Balanced Scorecard design
method. To ensure representative coverage, testing was
undertaken in three Business Units and one Function.
Roll-out of the reference design process with further business
units and functions;Training on the deployment of the reference design process for
the clients internal facilitators,
Awareness sessions for key financial managers.
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Strategies were not clearly formulated, communicated or linked to
in-year plans;
Accountabilities were not clearly defined;
Consequences of failing to deliver against the plan were unclear;
Performance monitoring relied very heavily on detailed financial
metrics alone, and;
Financial targets were set at easily achievable levels.
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The challenge was developing a process that management
teams could follow that would allow these long term strategic
goals to link to present in-year priorities, and for these priorities
to be associated with balanced metrics, sensible targets and
clear accountabilities.In many SMTs it was unusual for the whole team to meet face-
to-face. This presented a serious challenge for the Balanced
Scorecard design activity
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Off-line working to brief the SMT members one-on-one by
telephone or face-to-face about the process, and to develop, and
review a draft Destination Statement developed by one or two
members of the SMT working with the facilitators based on the
existing five-year Plans and Strategies.Group working by the SMT to confirm/finalise the Destination
Statement and then develop from it a Strategic Linkage model (SLM)
that would document the key priorities for the SMT in the year ahead
and form the basis of their Balanced Scorecard.
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More off-line working after the workshop wherein the
business unit planning team (who would be responsible for
operating the Balanced Scorecard once it was complete)
would with the internal project team to describe the priorities
on the SLM in more detail, and develop measures and targets
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Balanced Scorecard designs were created within 19 Business
Units, each resulting in Balanced Scorecards showing 12-18
month priorities , metrics and targets. 16 of the workshops were
in major Business Units and 3 within functions in the UK,
continental Europe, USA and Africa.
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Translation of strategy into measurable parameters.
Communication of the strategy to everybody in the firm.
Alignment of individual goals with the firm's strategic objectives -
the BSC recognizes that the selected measures influence the
behavior of employees.
Feedback of implementation results to the strategic planning
process
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Lack of a well-defined strategy
Using only lagging measures
Use of generic metrics
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The term "Six Sigma" is widely used to refer to all of the following:
A structured method for improving business processes. This method,called DMAIC (define, measure, analyze, improve, and control), issupported by an assortment of statistical tools.
A statistical measurement of how well a business process isperforming. A process that performs at "Six Sigma" produces only 3.4defects out of every million opportunities to produce a defect.
An organizational mindset in which people make decisions based ondata, look for root causes of problems, define defects based oncustomer rather than internal requirements, seek to control variation,
track leading indicators of problems to prevent them from happening,etc.
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SponsorSenior executive who sponsors the overall Six Sigma Initiative.LeaderSenior-level executive who is responsible for implementing Six Sigma within the
business.
Champion Middle- or senior-level executive who sponsors a specific Six Sigma project,
ensuring that resources are available and cross-functional issues are resolved.
Black Belt Full-time professional who acts as a team leader on Six Sigma projects.
Typically has four to five weeks of classroom training in methods, statistical tools, and(sometimes) team skills.
Master Black Belt Highly experienced and successful Black Belt who has managed
several projects and is an expert in Six Sigma methods/tools. Responsible for
coaching/mentoring/training Black Belts and for helping the Six Sigma leader and
Champions keep the initiative on track.
Green Belt Part-time professional who participates on a Black Belt project team or leads
smaller projects. Typically has two weeks of classroom training in methods and basicstatistical tools.
Team MemberProfessional who has general awareness of Six Sigma (through no formal
training) and who brings relevant experience or expertise to a particular project.
Process OwnerProfessional responsible for the business process that is the target of a
Six Sigma project.
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Human resources professionals will be able to help foster teamwork
development, conflict management solutions, and communication
among the Six Sigma team.
Throughout the entire Six Sigma Process, HR professionals will be
able to help document best practices, find and define problems andstatistical analyses, and offer potential pre-existing data that is needed
for these projects.
Another part of Six Sigma Projects that these people will be familiar
with is the use of scorecards
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Building a competency model that will help identify candidates with
the right mix of technical, team, and leadership skills and abilities.
Creating job descriptions that help candidates fully understand the
position and expectations prior to signing on.
Developing a retention strategy that will help ensure Black Belts
complete their rotation and the organization recoups its investment in
training and development.
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Analyzing existing compensation arrangements to identify the extent
to which those arrangements will support the Six Sigma initiative.
Creating a strategic compensation plan that will better support Six
Sigma.
Developing a non-monetary reward program for Six Sigma teams.
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Ensuring team leaders and members get training and/or
coaching in teamwork, conflict management,
communications, dealing with difficult team members, and
other team effectiveness skills.
Providing teams with tools that allow them to diagnose their
own performance and identify when and where they need
help.
Acting as a resource for Black Belts who encounter team-related challenges they cannot surmount.
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Working with Six Sigma Sponsors, Leaders, and Champions to
identify elements of the culture that might hinder the achievement of
Six Sigma goals.
Advising on change plans that will target those specific culturalelements.
Identifying how Six Sigma can be rolled out in a way that works
with, rather than against, the current culture.
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Drafting a change management/ communications plan that
addresses the people side of the Six Sigma rollout.
Helping create a "case for change" that describes:
The reasons for and benefits of Six Sigma.How the organization will help employees succeed in new ways of
working.
How Six Sigma fits with other ongoing initiatives.
Counseling Six Sigma Leaders and Champions on how their
behavior can help or hinder Six Sigma's acceptance throughoutthe organization.
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HR can play a pivotal role in the knowledge management aspect of
six sigma projects. There is immense learning in the six sigma
process.
During the implementation of the project, business processes are
examined on a microscopic level, and their productivity is analyzedon a numerical basis.
The learning process needs to be collated and disseminated within
the organization.
The Hr team can be the knowledge resource center that can
enhance business capabilities.
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Need for improvement in HR
Did not enjoy a desirable reputation in the company
reactive, uncoordinated, over-manned and unprofessional,
delivering poor, slow and non cost-effective services.
The outputs of the key HR processes were not clearly defined
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Business environment prior to Six Sigma Deployment
Organization environment
Employee development
Resourcing
Reward
Communication
Organization improvement
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What is six sigma
Six Sigma is a logical approach to achieving continuous
improvements in areas critical to the success of any manufacturing or
service-oriented business
Define: key processes are defined.Measure:What is the capability of the process?
Analyse:When and where do defects occur?
Improve: How can Six Sigma capability be achieved?What are the vital
few factors that control process results?
Control:W
hat controls will we put in place to sustain the gain?
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Improvement Team
The main stakeholders were:
Internal customers: to participate in the specification of objectives and
targets, selection of particular measures of performance which are
aligned with the overall business and HR strategy and to provide afeedback.
HR process owners and participants: in addition to the same role as of
internal customers, to learn and deploy Six Sigma improvement tools
and to develop, implement and sustain in continuous improvement of
their processes that optimize measures of performance to the
satisfaction of all stakeholders.
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Objectives
develop and implement HR processes and measures of performance
with embedded continuous improvement, owned by HR process
participants, that would deliver defined strategy, with the focus on
complete internal customer satisfaction.
increase job security and survival of HR central within the company,
increase employability of HR staff, promote Six Sigma and promote the
success of empowered, high-performance teams.
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Methodology: Deployment of Six Sigma process improvementmethodology
Define
Prioritization started with identification of the service provided.Process needs were identified to provide a service that
satisfied the customers. Measure
Generally, measures of performance were selected that havean impact on cost, quality, throughput time and/or humanreaction. Quality function deployment was used to identify andanalyse measures of performance that are aligned with
customer requirements and HR strategy objectivesMain objectives
to ensure alignment of HR and business strategic objectives;
to define critical-to-quality measures (CTQ);
to define critical-to-cost measures (CTX);
to define critical-to-throughput time measures (CTT);
valuable to organization;valuable to individual;
easy to understand and remember.
A cost of poor quality estimate was performed
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Analyze
All data were tested against the CHART data test i.e. no data couldenter the analysis stage unless they satisfied the CHART test.Appropriate Six Sigma tools were deployed to monitor and analyseperformance of processes. Analysis was performed by process
owners, with facilitation of Six Sigma Black Belt Improve
Development and implementation of improvement solutions followedidentification of vital input parameters that affect selected processmeasures of performance (MOPs). Monitoring of improvementactions was realized through implemented HR database. Vitalprocess inputs and process results were monitored and correlation
verified. Control
The key control objective is to sustain and get a continuousimprovement process embedded into HR processes
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Achieved Benefits Overall outcomes of improvement activities are better, faster
and more cost-effective HR services to the business
HR employees started enjoying greater customer satisfactionand loyalty
The future of the internal HR Department started to lookmore secure. It was recognized that HR dared to measurethemselves, change and had been proactive.
HR employees have originated a number of improvementideas
Reduction in throughput time, defect and rework are among
many elements that contribute to sizeable tangible costsavings from improved processes. Intangible costs of poorquality have been recognized
The implementation of the HR processes has supportedproactive behaviour and customer focus, and has alignedpersonal, team and company goals around HR and businessstrategy.
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